Citi raises LPL Financial stock target to $415, maintains Buy rating

LPL Financial (NASDAQ:LPLA)’s recruiting trends have been robust throughout the quarter, with management indicating strong momentum as the company enters 2025. Allen’s commentary highlighted the firm’s positive long-term outlook based on these solid recruiting trends and the potential for expansion among large enterprises and product manufacturers. Additionally, there are clear opportunities to drive operating leverage in the future. The analyst’s stance remains positive, citing the company’s ability to maintain its growth trajectory and capitalize on the opportunities ahead. This optimism is supported by the company’s strong performance, with a 52% return over the past year. The reiterated Buy rating reflects confidence in LPL Financial’s long-term story and growth prospects. For deeper insights into LPL Financial’s valuation and growth metrics, including 10+ additional ProTips, visit InvestingPro.

LPL Financial’s recruiting trends have been robust throughout the quarter, with management indicating strong momentum as the company enters 2025. Allen’s commentary highlighted the firm’s positive long-term outlook based on these solid recruiting trends and the potential for expansion among large enterprises and product manufacturers. Additionally, there are clear opportunities to drive operating leverage in the future. The analyst’s stance remains positive, citing the company’s ability to maintain its growth trajectory and capitalize on the opportunities ahead. This optimism is supported by the company’s strong performance, with a 52% return over the past year. The reiterated Buy rating reflects confidence in LPL Financial’s long-term story and growth prospects. For deeper insights into LPL Financial’s valuation and growth metrics, including 10+ additional ProTips, visit InvestingPro.

LPL Financial’s recruiting trends have been robust throughout the quarter, with management indicating strong momentum as the company enters 2025. Allen’s commentary highlighted the firm’s positive long-term outlook based on these solid recruiting trends and the potential for expansion among large enterprises and product manufacturers. Additionally, there are clear opportunities to drive operating leverage in the future.

The analyst’s stance remains positive, citing the company’s ability to maintain its growth trajectory and capitalize on the opportunities ahead. The reiterated Buy rating reflects confidence in LPL Financial’s long-term story and growth prospects.

In other recent news, LPL Financial has seen a series of significant developments. The company’s robust performance has led JMP Securities to maintain a bullish stance, reiterating a Market Outperform rating with a price target of $435. Concurrently, JPMorgan upgraded LPL Financial’s stock rating and raised its target to $397, reflecting confidence in the firm’s performance and revising its 2026 earnings estimates upwards by approximately 10%.

The firm has also been on the regulatory radar, agreeing to pay an $18 million civil penalty to the Securities and Exchange Commission (SEC) for persistent issues with its anti-money laundering program. Alongside this, LPL Financial and Wells Fargo (NYSE:WFC) each agreed to pay a $900,000 penalty to the SEC for providing incomplete and inaccurate securities trading data.

LPL Financial has also settled with its former CEO, Dan H. Arnold, allowing him to retain stock options valued at approximately $12 million. In another strategic move, the firm replaced its existing Term Loan B with a new Term Loan A, expected to save the company around $4 million annually in cash interest expenses.

The company has been expanding its workforce and asset base, acquiring Atria Wealth Solutions and planning to onboard the wealth management businesses of Prudential (LON:PRU) Financial (NYSE:PRU) and Wintrust Financial (NASDAQ:WTFC) by early 2025. These developments are expected to contribute approximately $76 billion in assets, with plans to acquire The Investment Center in the first half of 2025 and restart share repurchases in Q4, targeting $100 million.

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